What is the primary role of accounts payable in relation to purchase orders?

The primary role of accounts payable in relation to purchase orders is to ensure payment is made after processing. This function is crucial as it involves receiving purchase orders, verifying the goods or services received against the orders, and processing invoices for payment. Accounts payable serves as a control mechanism to maintain accurate financial records, manage cash flow, and uphold supplier relationships by ensuring timely and accurate payments.

After the purchase order is fulfilled and the corresponding invoice is received, accounts payable verifies that everything matches correctly before approving the payment. This systematic approach helps avoid disputes with suppliers and ensures that the company maintains its obligations in a timely manner.

While contracting with suppliers, managing inventory, or avoiding audits may be relevant tasks in the broader scope of procurement and financial management, the core focus of accounts payable remains on the processing of invoices and ensuring that payments reflect the received goods and services accurately.